Local taxes withheld in wrong city

Forum|Forum|2 years ago
January 12, 2024
2 replies
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Hello!

My employer withheld local taxes for the wrong city in 2023. I have filed with that city to receive a refund.

My questions are:

1. When I'm filling out my return with TurboTax, do I still input the information in boxes 19/20 on my W2, even though it's the incorrect city?

2. I'm assuming I need to file directly with the correct city and pay taxes where they should have been withheld?

Thank you!

TurboTax Free Edition Online

Best answer by Hal_Al

Q. My thinking is that I need to request a refund from the city of Westerville and file my taxes with the city of Columbus.

A. Yes. But, call the city of Westerville first for confirmation. There may also be a special form used for this refund situation (usually easier than a regular form). Phone: 614-901-6420.

TurboTax cannot prepare either a Westerville or Columbus return. See this link for Westerville:

https://www.westerville.org/services/income-tax-forms

Columbus: https://new.columbus.gov/Services/Make-a-Payment/Pay-Taxes

xmasbaby0

Employee

You enter your W-2 as it appears. YOU do not change anything on your own W-2---ever. As for the city taxes---sort it out with the employer. But....ultimately it is up to you to take care of filing your local tax correctly.

TurboTax only prepares a few city or local tax returns as an extra step in your state return. For most local tax returns you are on your own. You may have to ask around amongst your neighbors, etc. to find out if you have a local tax and how to pay it. “Google “ local tax for your area. Call your city government, etc. Your only record of paying your local tax will be your own bank/credit card records

https://ttlc.intuit.com/questions/1899325-which-city-tax-returns-can-i-do-in-the-turbotax-state-program

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_Al

Employee

For specific advice, you first need to identify the cities involved.

And then the circumstances of the wrong withholding.

For example, in Ohio, it's highly unlikely your employer withheld for the wrong city. Any Ohio city, with an income tax, is allowed to have withholding taken out of your pay while you worked in that city. Your employer is required to do that withholding. You normally only have to file a return in the city you live in. It is not necessary to file one in the city you work in, if different. Your employer will remit withholding to the city you work in, but you do not file a return unless you're claiming a refund or your employer didn't withhold enough ( both highly unusual). The city you live in will allow a credit or partial credit for the withheld tax you paid to the work location city.

In Michigan, it's similar.

Marz77Author

Thank you for the response.

I work remotely with a Westerville mailing address which is where my local taxes were withheld. My address is actually in the city of Columbus corp limits in Franklin county, not the city of Westerville. My thinking is that I need to request a refund from the city of Westerville and file my taxes with the city of Columbus.

Hal_AlAnswer

Employee

Q. My thinking is that I need to request a refund from the city of Westerville and file my taxes with the city of Columbus.

A. Yes. But, call the city of Westerville first for confirmation. There may also be a special form used for this refund situation (usually easier than a regular form). Phone: 614-901-6420.

TurboTax cannot prepare either a Westerville or Columbus return. See this link for Westerville:

https://www.westerville.org/services/income-tax-forms

Columbus: https://new.columbus.gov/Services/Make-a-Payment/Pay-Taxes